The pound headed for its biggest monthly decline versus the dollar since October as Brexit talks between the U.K. and the European Union, alongside an underwhelming economic outlook, kept the currency pressured.Sterling was on track for its fourth consecutive month of losses versus the euro. Comments from Bank of England policy maker Michael Saunders, that a modest interest-rate increase was warranted, did little to support the British currency, which weakened against 13 of its 16 major peers Thursday.Political uncertainty in the U.K. also limited gains in sterling with U.K. Prime Minister Theresa May’s future coming under increased scrutiny after the Conservative Party’s poor performance in the June snap elections. While May said she will still run for re-election, in an interview to ITV in Kyoto, Japan, her own lawmakers doubted her prospects.
Source: Brexit-Hit Pound Set for Worst Month Versus Dollar Since October – Bloomberg
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Craig Erlam
Latest posts by Craig Erlam (see all)
- Week Ahead – Earnings to dominate - 01/22/2021
- A tough end to the week - 01/22/2021
- Oil and gold slip as dollar higher - 01/22/2021